TIOL-DDT 1708 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1708</font> <br> 07.10.2011 <br> Friday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs-On-site Post Clearance Audit (OSPCA) - Regulations Notified – Exports not Excluded</font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IF</strong> you </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ don't make available <em>in a timely manner</em> the books of account; or </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ don't provide<strong> true and correct</strong> information; or </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ don't render <strong>assistance</strong> to the proper officer in the discharge of his official duty, </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">you shall be liable to a penalty which may extend to fifty thousand rupees. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The '<strong>On-site Post Clearance Audit at the Premises of Importers and Exporters Regulations, 2011</strong>' have been notified. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, the Customs officers can visit the premises of importers and exporters to conduct ‘audit'. They can even draw samples. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board may soon issue instructions on how the ‘audit' is to be conducted. Will the CAG's Audit also follow soon? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Board Chairman had given a categorical assurance to the exporters that this audit will not cover exporters for the present. [<strong>Please see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=13124" target="_blank">DDT 1685- 05 09 2011</a></strong>] </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We hope the promise will be kept by his staff. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_072.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No. 72/2011-Cus(NT), Dated : October 04, 2011 </font></strong></a></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Steve Jobs Finally Quits </strong></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/steve.jpg" alt="Steve Jobs " width="450" height="288" hspace="5" border="0" align="center"></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>I </strong>use an Apple Mac Computer; I use an Apple iPhone, both of which have almost become integral parts of my body and mind. As I type this, my fingers shiver thinking of the man who created it all and who is no more now. In the year 2000, Taxindiaonline was stated in a small bedroom with an Apple computer and an incredibly optimistic person as our only assets. It was an Apple in Eden Garden that started Man on his adventure; it was an apple that made Newton and it was through Apple that Steve Jobs put a dent in the Universe. Apple invented and others copied and made money.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This college-dropout who walked seven miles every Sunday to get one good meal a week at the Hare Krishna temple, built one of the richest companies in the world and got fired from the Company he created! He took a calligraphy course in college and that helped in creating proportionally spaced fonts for the Mac, which is perhaps the greatest achievement in computers and as Windows just copied Mac, computers might not have had the wonderful typography that they do, but for the calligraphy that Steve jobs learnt in college. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He said, <strong><em>"Death is very likely the single best invention of Life. It is Life's change agent. It clears out the old to make way for the new</em></strong><em>. Your time is limited, so don't waste it living someone else's life."</em> </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Three years ago, in a presentation he said, “the reports of my death are greatly exaggerated”. It is now a fact – a sad fact. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He was a leader who fought for the best, not for the most. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"We don't think that televisions and personal computers are going to merge. We think basically you watch television to turn your brain off, and you work on your computer when you want to turn your brain on."</em> – Steve Jobs </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We carried Steve Jobs in our Guest Column on 27 06 2005, which makes great reading any day. If you had not read it, please do it now; if you had, please read it again - <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=2174" target="_blank"><strong>Stay hungry, stay foolish!</strong></a></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Companies to File Documents and Forms in XBRL </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified the <strong>Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2011</strong>. It has come in to force from 06 October 2011. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The following class of companies have to file their Balance Sheet, Profit and Loss Account and other documents as required under section 220 of the Companies Act, 1956 with the Registrar using the Extensible Business Reporting Language (XBRL) taxonomy for the financial year ending on or after 31st March 2011 with e-Form No. <strong>23AC-XBRL and 23ACA-XBRL</strong> specified under the Companies (Central Government) General Rules and Forms, 1956: - </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ all Companies listed with any Stock Exchange(s) in India and their Indian subsidiaries; or </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ all Companies having paid up capital of rupees five crore or above; or </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ all companies having turnover of rupees hundred crore or above. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, the companies in Banking, Insurance, Power Sectors and Non-Banking Financial companies are exempted for Extensible Business Reporting Language (XBRL) filing for the financial year 2010-11. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfmca/pdf2011/notification_XBRL_rules.pdf" target="_blank">MOCA Notification Dated: October 05 2011</a> </strong>[Why can't the Ministry give numbers to its notifications like other Ministries do?] </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">MOCA Notifies XBRL Forms </font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified the <strong>23AC-XBRL and 23ACA-XBR</strong> forms mentioned above </font></p> <p><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfmca/pdf2011/notification_23AC_23ACA_XBRL.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MOCA Notification Dated: October 05 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">What Multilateral Trading System for Future?</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WTO</strong> Director-General Pascal Lamy, in a speech at Deutsche Bank in Berlin on 6 October 2011, said: “What we need is an international monetary system which facilitates international trade, cross border investment and a better allocation of capital across nations. What we need is a global monetary system, which inspires confidence and offers stability. One which provides the means by which global imbalances that risk endangering stability, can be addressed. Differently put, we need to do for international monetary relations what we already did for trade: move from the world of Hobbes towards the world of Kant. Trade is not immune to this global state of affairs. And here too, unilateral solutions will not work.” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">He added, “the global trading system of the future will need to keep reducing obstacles to trade, in order to keep generating efficiencies and economies of scale, which remain an essential component of sustainable growth. We will need to complete our current unfinished business - tariff peaks and distorting subsidies — but beyond that we will have to focus more attention on non-tariff barriers. By this I mean obstacles to trade stemming from regulatory differences in areas such as food or product safety, consumer information or environmental protection. Regulations of this kind are legitimate and their purpose is usually to protect the consumer and not the producer. But if different standards proliferate, they come at a cost to trade, as the EU experience in creating the internal market showed”. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">GST Empowered Committee to meet next Friday </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GST</strong> is still alive; the Empowered Committee headed by Bihar FM Sushil Modi is to meet on October 14 to discuss issues like CST Compensation, States power to levy Cess in case of natural calamities, powers of the dispute settlement authority, etc. The Committee will also release a report on the GST team's recent visit to Europe. The Committee also plans a meeting with the Reserve Bank of India to ensure that all banks facilitate online payment of Central Excise, Income Tax and VAT. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Monday's cases</font></strong></font></strong></font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left">Central Excise</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Once duty on final products has been accepted by department, CENVAT credit cannot be denied even if activity does not amount to manufacture: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> duty paid by the appellants has been accepted by the department, which is admittedly more than the CENVAT credit availed by the appellants. Therefore, following the various judicial pronouncements held that the appellants are not required to reverse the credit. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income tax - Services provided by TPA to corporate hospitals are professional services liable to TDS u/s 194J - CBDT Circular No 8 of 2009 partly set aside: HC </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the High Court are - Whether the<strong> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2009/it09cir08.htm">circular No. 8/2009</a></strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2009/it09cir08.htm"> </a>requiring deduction of TDS when payment is made by TPA to a corporate hospital is ultra vires and contrary to Section 194J of the Act; Whether for determining as to whether the payment made is towards “fee for professional services”, the nature and character of the payment is relevant or the manner in which the payment is accounted for by the payer is relevant; Whether for the purpose of section 194J, the hospital being a corporate and hence an artificial person, cannot be said to render “professional services” and whether for the purpose of section 194J, the recipient is restricted to an individual who carries on medical profession or other professions. Although the High Court upheld the application of provisions of Sec 194J but partly set aside the Circular No 8 of 2009. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Abacus Training to students is recreational in nature and hence is exempt service: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ABACUS</strong> training imparted to the teachers enables such teachers to either get employment in a franchisee imparting similar training or to open their own training centres and thereby get self-employed. Either way, the training received by them prepares them to get employment/self-employment and such training, therefore, would come under vocational training. Since vocational training comes under the exempted category of services, the demand confirmed in respect of Abacus training to teachers is also set aside along with the penalty imposed in respect of the same. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the judgements </font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more<strong> DDT</strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Weekend. </font></p> <font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font> </body> </html>